44 million transactions a day

Bearice asked me to post this in economics for him as he has been banned. I thought it was reasonable so have done so.

Contents:

Largest lender State Bank of India (SBI) has 44 million transactions everyday. I heard a SBI manager or somebody from SBI saying this, sometime 6 months back on Discovery Channel.

I am saying that, if SBI earns 1 Ruppee profit from each transactions, then SBI earns Rs 4.5 crores profit everyday which comes to estimated Rs 1,125 crores profit every year for SBI.

Understandably, SBI must be earning more than Rs 4.5 crores profit everyday. But SBI has displayed Rs 21 crores profit only for the fourth quarter ended March 2011 as against Rs 1,866.60 crore in the same quarter in the previous fiscal.

SBI is dealing with some bad loans, operating expenses including employee cost, Tax of over Rs 900 crore and transfer to some pension fund.

Despite dismal performance, the bank maintained dividend at 300 per cent for 2010-11. SBI will pay dividend of Rs 30 per share on face value of Rs 10 after shareholders approval. Please confirm the above statements.

Bearice was banned for inappropriate comments. Not economic posts. I have decided that the post is relevant and as he requested I post it and it does not fall under the reasoning for his banning I would post it.

He had the followup post.

If I am correct, some analysts were expecting 10,000 crores profit from SBI for that quarter. Please confirm this.